Event non-ATF Mobile

Animoca Brands’ Shares Uplifted On ASX After Signing A Strategic Deal With China Partner

  • December 11, 2018 07:54 PM AEDT
  • Team Kalkine
Animoca Brands’ Shares Uplifted On ASX After Signing A Strategic Deal With China Partner

Global developer and publisher of games and smartphone apps Animoca Brands Corporation Limited’s (ASX: AB1) shares went up by 10.526 percent on 11 December 2018 following the announcement on a strategic partnership with iClick Interactive Asia Limited.

iClick is China's largest independent online marketing technology platform which helps both its domestic and international clients to reach their target audiences in China by offering omnichannel marketing capabilities. The company has entered into the Collaboration Framework Agreement with iClick to jointly develop and grow an online marketing business serving the video game sector.

This strategic partnership between both the company is focused on achieving synergies by using their respective strengths. iClick’s strengths include its advanced online marketing and data technology platform and its data assets of over 780mn Chinese user profiles, whereas Animoca Brands is having its expertise in mobile gaming, the blockchain, artificial intelligence, and international markets.

Under the agreement, both the companies will utilize the expertise of AB1’s artificial intelligence subsidiary Zeroth for data analysis to monetize iClick’s users profile data. AB1 is also planning to invest up to US$2 Mn for the development of the media and advertising business which includes building and developing products and services to monetize iClick’s China audience data.

As per the announcement, now both the companies will try to finalize a strategic reseller partnership in which AB1 will become a strategic reseller of iClick’s online marketing services to help iClick to expand its international video gaming markets.

To support its business expansion, AB1 has raised A$6 Mn at a premium of A$0.098 per share from various strategic investors. The company is going to issue around 61 million shares. Mr. Yat Siu, the co-founder, and chairman of Animoca Brands is one of the strategic investors in the strategic placement. While commenting on the strategic partnership, Yat Siu said that through this strategic partnership, the company is trying to increase its marketing and distribution capabilities in China. He further said that the company is looking forward to collaborating with the largest independent Chinese online marketing platform, and to leverage the valuable data assets of more than 780 Mn Chinese user profiles.

The company is expecting that through this partnership, AB1 will be able to reach to new audiences in China it will help in generating more revenues for the company. China is a very important market for AB1 as China is the world’s largest mobile gaming market with over 25 percent of global games revenue. According to a recent market intelligence report, the domestic revenue of China’s mobile game is expected to increase from US$16 Bn in 2018 to US$24.7 Bn in 2022.

In the last six months, the share price of AB1 increased by 90 percent as on 6 December 2018. AB1’s shares traded at $0.105 with a market capitalization of circa $59.75 million as on 11 December 2018 (AEST 4:00 PM).


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